Randall's,Inc

Randall's,Inc.has 20,000 shares of stock outstanding with a par value of $1.00 per share.The market value is $12 per share.The balance sheet shows $42,000 in the capital in excess of par account,$20,000 in the common stock account,and $50,500 in the retained earnings account.The firm just announced a 5 percent (small) stock dividend.What will the balance in the retained earnings account be after the dividend?

A) $38,500
B) $39,500
C) $50,500
D) $61,500
E) $62,500